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- Contracted Sales Amount Soars 62% to around RMB23.5 Billion;
- Prudently Captures Development Opportunities in 1st and 2nd -tier Cities and Strengthens Business Layout |
HONG KONG, Feb 28, 2017 - (ACN Newswire) - China SCE Property Holdings Limited (stock code: 1966), announced its annual results for the year ended 31 December 2016 ("year under review"). Despite the cyclical slowdown of economic growth in China and the PRC government's restriction policies on property purchase and mortgage loans in certain cities, the Group's annual contracted sales amount still surged to a new high of RMB23.5 billion, representing a year-on-year increase of 62%, 52% higher than its annual sales target of RMB15.5 billion. The Group's sales performances in 1st and 2nd -tier cities were particularly outstanding, with contracted sales accounting for 66% of the Group total.
For the year ended 31 December 2016, the Group's revenue was approximately RMB12.48 billion, a gain of 16.8% against the previous year. Profit for the year was RMB2.44 billion, a remarkable increase of 55.6%. Profit attributable to owners of the parent increased significantly by 125.6% year-on-year to approximately RMB2.07 billion. Earnings per share were RMB60.5 cents. As at 31 December 2016, the Group had cash and bank balances of approximately RMB8.6 billion. The Board resolved to declare a final dividend of HK14 cents per ordinary share for the year ended 31 December 2016, representing a dividend ratio of the core profit of 31%.
With abundant cash flow, the Group acquired 9 parcels of land in 2016 mostly in 1st and 2nd -tier cities, commanding a total consideration of approximately RMB11.6 billion. It also expanded market coverage to Nanjing, Hangzhou and Suzhou. As at 31 December 2016, the Group's land bank increased to 9.1 million sq.m., with average land cost at approximately RMB2,864 per sq.m..
The Group has sufficient area available for sale in 2017, which will provide a solid foundation for its contracted sales to climb to a new high again. Including the unsold portions of projects already launched, the Group has area available for sale of approximately 2 million sq.m., including 11 new projects pending for launch such as The Paramount and Jade Plaza in Beijing, Sky Horizon, The Glamour and The Paramount in Shanghai, Royal Terrace and Garden Terrace in Tianjin.
At the same time, the Group will proactively participate in primary land development projects in 2017 and this operation will become one of its strategic core businesses. The Group's primary land development project near the Xiamen Xiang'an International Airport being built, which occupies around 3.11 million sq.m., is intended to be developed into new coastal city and industrial parks. This project is likely to turn into another profit driver of the Group.
Looking ahead, the Group remains positive about the development prospects of the real estate market in 1st and 2nd -tier cities. In the long run, benefitting from the progress of the new-type urbanisation implemented by the country, the Group is also confident of the long term prospects of the real estate market at large. Guided by its strategy of "Focusing on 1st -tier cities and quality 2nd -tier cities," the Group will continue to explore development opportunities in these cities actively and in steady strides. It plans to set foot in two or three core cities each year so as to enhance its reputation in 1st-tier cities cities and core 2nd -tier cities.
In 2017, the first year after its headquarters is relocated to Shanghai, the Group will advance its strategic deployment in the Yangtze River Delta economic zone to a greater breadth. With Shanghai as the base, it will strive to pool together the resources and talent it has in the 1st -tier city, and refine its operations and step up regional development efforts so that it may achieve yet another leap in business development. The Group will continue to work hard on assuring the sustainability of its operation and scaling up its business, thereby generating better returns on investment for shareholders."
About China SCE Property Holdings Limited
China SCE Property Holdings Limited ("China SCE" or the "Company"), together with its subsidiaries (collectively, the "Group"), were established in 1996 and listed on the Main Board of The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange") in February 2010 (Stock Code: 1966.HK). The Group's major businesses include investment holding, property development, property investment and property management. The Company is headquartered in Shanghai for its business operations, while implementing regional focused development strategy targeting the first- and second-tier cities in the Yangtze River Delta Economic Zone, the Bohai Rim Economic Zone, the Pearl River Delta Economic Zone and the West Taiwan Strait Economic Zone.
The Group's property projects are distributed in 15 cities, including Beijing, Shanghai, Shenzhen, Tianjin, Nanjing, Hangzhou, Suzhou, Xiamen and Nanchang. Its products cover a wide range of properties including high-rise residential, low-rise residential, villas, commercial buildings and offices. The Company upholds "We Build to Inspire" as its corporate mission, strives to satisfy customers' needs and diligently pursues excellence in product quality. The Company was awarded the "2016 Best 50 of China Real Estate Developers" and "Fortune China 500" during the year.
Topic: Press release summary
Source: China SCE Group Holdings Limited
Sectors: Daily Finance, Real Estate & REIT, Daily News
https://www.acnnewswire.com
From the Asia Corporate News Network
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